Fate of Downtown Peoria hotel management could be decided at special council meeting

Friday

Jun 27, 2014 at 6:29 PMJun 27, 2014 at 9:05 PM

Nick Vlahos of the Journal Star

PEORIA — A decision regarding a management change for the Downtown Peoria hotel project appears to be at hand.

The proposed plan for the Marriott Pere Marquette and Courtyard by Marriott is the subject of a special City Council meeting scheduled for 5:30 p.m. Tuesday at City Hall.

The council first discussed the issue May 13. That was about two weeks after project developer Gary Matthews requested a management move from Marriott International Inc. to First Hospitality Group, a Rosemont-based firm.

The council has deferred the issue four times. City Manager Patrick Urich said he wanted other project lenders to sign off on the plan first. The city also must vote on it, because the project used about $36 million in municipal money.

During the council’s regular meeting earlier this week, Urich said opinions likely would be in place in a few days. Third District Councilman Tim Riggenbach appears eager to hear Urich’s report Tuesday.

“I like to think that ... the Pere Marquette is a beautiful hotel, the best in central Illinois, arguably,” Riggenbach said Friday. “But in (Marriott’s) mind, it’s one of hundreds, if not thousands, of mid-sized hotels.

“My question would be, ‘Are we getting the best management from Marriott, or are we kind of their starting point, where they train people?’ If it were FHG, the hotel would be their crown jewel.”

FHG manages about 50 hotels in 10 states. Its roster includes the Marriott SpringHill Suites in Peoria.

Reports earlier this month indicate East Peoria-based Matthews and associated partners and firms face foreclosure proceedings and lawsuits regarding a number of their properties.

“When this first came up, I was one of those who said, ‘This management change and our opinion of Gary Matthews, those are two separate issues,’” Riggenbach said. “But from the news from Tazewell County the last few weeks, it’s gotten a little more complicated.

“My responsibility is to make sure taxpayers’ dollars invested in the Pere are protected. The best way to protect those dollars is to make sure the Pere is run professionally and efficiently, and that it’s not being caught up in any unnecessary squabbles.”

At-large Councilman Chuck Weaver has suggested a three-person panel, including Matthews and a city appointee, oversee the hotels. That or something similar appears necessary for Weaver to approve a management change.

“It’ll be difficult for me to support it without control mechanisms,” he said.

The refurbished Pere Marquette debuted one year ago this month. A new, adjacent Courtyard by Marriott is to open soon. If the council approves a management change, both hotels would retain the Marriott brand.

Nick Vlahos can be reachedat 686-3285 or nvlahos@pjstar.com. Follow him on Twitter @VlahosNick.